Oil markets surge as the U.S. and Iran trade new attacks
Oil prices surged past $100 a barrel for Brent crude amid escalating attacks between the U.S. and Iran. Iran launched ballistic missiles at Jordan, targeting a U.S. military base, which Iran claims caused heavy damage, though Jordan reported intercepting most of the projectiles. This exchange followed U.S. strikes on five Iranian oil tankers in the Gulf of Oman. The tit-for-tat attacks have reintroduced risk into the market, with Goldman Sachs forecasting oil could reach $120 a barrel.
The renewed hostilities directly impact global energy markets, threatening to push prices higher for consumers and potentially destabilizing the global economy, with significant implications for inflation and consumer spending.
A Spanish-operated oil tanker, the Hercules Star, was hit by an unknown projectile, resulting in one seafarer killed and another missing. China has been increasing its crude oil purchases, reversing a previous trend and contributing to rising oil prices.
